I Will Teach You To Be Rich

I Will Teach You To Be Rich helps you save money on autopilot while allowing yourself to spend guilt-free on the things you enjoy.

Much like Rich Dad Poor Dad, this book starts with a necessary reminder to start accepting you’re the one in the cockpit, when it comes to your money.

Most people agree that they “should exercise more” or are “supposed to eat less junk food”. Even if they can’t make the change, at least the insight’s there. But have you ever heard anyone say: “I really need to get better at handling my money.”?

Rarely.

Because no one likes to admit that they’re bad with money. Even though a lot of people are.

Yes, there are plenty of people and factors to blame. Like the media, confusing you with all this contradictory information. Or the education system, which never taught you how to spend your money, save it, let alone invest it.

But excuses will always stay what they are: excuses. No matter how right they might be.

Saving and investing money is scary, and you might lose some money, but better to lose it now, rather than tomorrow. The younger you are, the more risk you should take on, because it’s still easy for you to make back the money.

And even though it will take a while to see results, if you can only afford to invest a little, you should never neglect the power of compounding interest.

So stop making excuses, and start taking responsibility for your personal finances. It’s the first step towards getting rich.

Sitting down every month to see how much you want to spend on what is a hassle. No one wants to do that.

Which is why Ramit suggests a Conscious Spending Plan. What he means by that is: Take cuts off your paycheck and automatically spend them towards the right things.

For example: Use 60% of your income to pay fixed costs, like rent, utilities, food and your credit card bill. Then, invest 10%, for example in stocks, your 401(k), or Roth IRA. Save another 10% for vacations, Christmas presents and unexpected costs.

This leaves you with 20% of your money, which you can spend on whatever you like, guilt-free.

Automate these processes and payments, for example I personally save $50 every month, which is automatically taken out of my bank account on the 1st.

This way I make sure I save at least $600 per year, and there’s no chance I’m spending that money accidentally.

As with any habit, removing the need for willpower makes it a lot easier to get it right.